Volatility is obviously the name of the game

Sahil Bhatia

Thursday, 6 Oct 2011 | 3:45 PM ETCNBC.com

SHARES

Hello CNBC readers! Thank you for checking out our blog. Since we last wrote, things have not come easy for the Johnson team (and our ranking reflects this). But alas, such is the nature of the beast when investing. We remain committed to our strategy and are confident that it’s just a matter of time until the pendulum swings back in our direction.

Volatility is obviously the name of the game these days. Since the downward break-out in August, the S&P has been range-bound, hovering mostly between 1100 and 1200. Headline risk is really driving the markets, and the VIXX has more than doubled from its recent low in July. Unfortunately for us, this means that the market has, at least for now, thrown fundamentals out the proverbial window. Consequently, our strategy has been to make more concentrated and levered bets while staying very nimble in an effort to stay at least half a step ahead of the market. Over the last week, the market hasn’t gone our way, but we remain vigilant. We know that in a market like this, fortune can swing back in our favor in a real hurry if we stay committed, and once it does, we hope to benefit greatly. After all, no pain no gain, and we’re hoping that by feeling the pain now, our real gains will be coming in the next month. So stay tuned and enjoy the ride, even if it is a bumpy one.